The Turkish Central Bank reduced interest rates for the eighth consecutive month in an effort to revive the economy.

The bank cut rates by half a percent to just 8.75 percent, the lowest on record, and has almost halved them in eight months.

The bank said in a press release that it could not rule out further interest cuts until the economy was back on track.

The latest cut will come as more bad news for all those people “living off the interest”.

After tax at 15% most savers will receive just 7.3% interest per year.  But after inflation of 5.2% is taken into account the real return will be only 2%.

The good news for overseas visitors is that the Lira has now weakened against major currencies giving them more ‘bang per buck’.